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Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is
Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 5% and the weighted average cost of capital is 30%. Its effective tax rate is 40%. Sales $15,000,000 Operating income 1,500,000 Total assets 3,500,000 Current liabilities 830,000 What is the division's Residual Income (RI)? O A. $6,000,000 OB. $450,000 O c. $1,325,000 OD. $530,000
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